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TransitionTraffic Start of transition If the account is not optimised then only adCenter keywords + will be active after transition. 500 active 1,500 active keywords keywords More than 500 active keywords Loss of traffic due to the loss of 1,000 Yahoo! keywords PRE-TRANSITION POST-TRANSITION Source: Efficient Frontier Q3 2011 study Transition

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Budgets: Ensure your Insertion Ordersare in place for the Joint Marketplace • Panama and adCenter Insertion Orders will be required for April 1 (Yahoo! and Microsoft teams) • An additional Insertion Order will be required for the Joint Marketplace (Yahoo! Team) 9

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search directthe fastest Search product in the market: gives search a whole new interface and paradigm lebron james new york c 19

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contextual shortcuts provide our users with the tools they need to explore further what they want, wherever they want20

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new images search a revamped experience that introduces for the first time a social element to image searching21

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connected device“Mobile is where the world is going to be in the next 3-5 years” “Within the next 5 years, mobile search will be in 6 MONTHS: 2011 JAN bigger than web search. 5.9m UK 31% of all mobile and what is more, it searches web users (19m) won’t look anything like 2011 JUL web search. We believe 8.2m UK 35% of all mobile searches web users (24m) it will most likely take the form of apps that will solve niche user needs. It won’t look like search, 25% INCREASE IN but it will sure use the MOBILE WEB USERS same data and backend as search does today” Shashi Seth 40% INCREASE IN SVP, Yahoo! Search Products SEARCHES 22 Figures from Comscore H2 2011

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search apps dedicated search engine for apps, to shop from the PC with easy downloading to smart phones23

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Match Types - Industry Standards Exact Match: Match type that only serves ads for search queries that exactly match the bidded term Phrase Match: Match type that serves ad for exact matches and search queries that included the bidded term Broad Match: Match type that will serve ads for exact matches, phrase matches, and other search queries deemed relevant to the bidded term as determined by the search engine Negative Match (Excluded terms): Provides advertiser control to prevent ad serving for queries with the negative term (e.g. Airlines typically negative match the term “crash”)

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Canonical Terms ExplainedYahoo! search technology takes multiple forms of keywords and maps them to a single primary formthrough a process called canonicalization. This could include spelling corrections, plurals and similarphrases.Any identical canonical keyword form is a duplicate. As a result, you do not need to bid on everykeyword variation individually. You only need to bid on the term “London Hotel” once to be displayedfor every canonical keyword variation.

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The Duplicate EffectThe term “Holiday in Spain” appears in different ad groups, the example below shows howduplicates can cause internal competition and inflate CPCs.The bids and the QI scores work together to affect CPC as well as ranking. By removing thesecond keyword, there may be a positive impact on floor CPCs (i.e. lower minimum bid).

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Advanced Match Best Practices Before converting a Google bulksheet to Yahoo!, remove Excluded Words which are all or part of your bidded term › Having these excluded words will not remove Standard Match traffic (as on Google) › This will actually block your most relevant Advanced Match queries (via Subphrase Match & Units). Revisit your accounts to ensure you’re not limiting traffic. When adding Excluded Words, avoid adding similar phrases as you may be duplicating efforts › EXAMPLE: “tie”, “dye” and “tie dye” › Do not add multiple Excluded Words that roll up into the same canonical › EXAMPLE: “shoe” and “shoes” – only need to add one Avoid long phrases, as we will only exclude you from serving if we find the full phrase in the query Remember that you CAN block part of your bidded term, but you will always serve via Standard Match

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SERP and Copy Best Practices With more granular ad control, copy can be very targeted to the search query; advertisers can maximize bolding to increase CTR, and therefore, average position without raising bids.Overall, focus copy on responding to the search query with specificity, clarity, relevance and competitive advantages. The search term is your key click incentive – by using the search term in both the T&D can increase CTR by as much as 50%. Always test.

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Quality and Relevance Increase ad quality across the board. Better ads protect against new entrants and displacement by competition. Higher quality scores can reduce CPCs and increase the total amount clicks that can be captured through increased CTR. By lining up the ads and landing pages, conversion rates should increase. Revise destination URLs to avoid generic landing page and use deep links to improve relevancy. A display URL is an easy way to let user feel confident that the site content is relevant. Writing more specific display URLs is also an good opportunity to add another line of text - www.textlocal.com/SMS. Turn ad optimization on and test multiple ads. Keep poor-performing ads from being shown in equal rotation with high-performing ads, which could negatively affect your CTRs, QIs and potential sales. Testing different ad variations can help you identify the most effective messaging. Remember, but doing nothing, your QI can still fall. Use keyword insertion to increase relevancy. Using the search term in both the T&D can increase CTR by as much as 50%.

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The Structure of the Account is the FoundationGroup keywords by term type and theme. By granularly structuring ad groups, more targeted copy can be assigned to a more relevant set of keywords. By increasing ad quality you can likely lift CTR - making higher ad positions cheaper or decreasing your CPC to maintain a certain positionIsolate top-performing, high-volume keywords and eliminate variables. Higher impression keywords have a greater influence on not only which ad will serves, but also what the QI for an ad group will be. Therefore, by grouping high- and low-volume keywords together, you could be masking the true performance of an ad group. By isolating your top-volume, higher-value keywords, you have more transparency on what decisions to make next (better ad testing, bid changes, more specific display URL, budgeting).Separate brand vs. unbranded. To allow for effective budgeting, you should always separate brand from unbranded terms..

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Display ads drive searches 9% I investigated the product, brand or company through social media or message boards 21% I typed the company Web address 2/3 of Online into browser and navigated to the 37% Users Have site Taken Action 27% 63% I searched for the product, brand Based on an or company using a search engine Online Ad 31% I clicked on the ad itself Responded to Online Display Ads Did not respond to Online Display Ads When display ads drive an immediate response, it is as likely to take the form of a search as it is an ad clickSource: Commissioned Custom Research Study by Forrester Consulting on behalf of iProspect, January 2009, Base: US Online Consumers, N=1575 4

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The power of Display advertising• There are more than 90 ad formats available on Yahoo!• A front page ad on Yahoo! can receive more than 19 million impressions All available formats can be found on our ad specs site

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Target customers throughout the funnel process Intent toAwareness Favorability Consideration purchase Purchase Reaches potential Gets its best returns when customers at every point a prospect is already near along the funnel the purchasing moment

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Integration for a greater effectiveness the total of the two combined isSEARCH causes GREATER than the sum of its partsgreater sales liftsthan display (becauseit is more targeted)DISPLAY has muchwider reach, its effecton total salesvolume is greater

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Summary Display and Search together are more powerful than eitherMatch made in heaven advertising solution alone An integrated campaign will deliver against multiple campaignA win-win solution goals and objectives With so many ad formats available, the digital canvas is a stage onTime to shine which your brand can shine Integrated campaigns boost online conversions by up to 83% andBoost your sales offline sales by up to 119% Yahoo! continues to deliver first-class advertising solutions in bothThe perfect partner Search and Display

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The Evolution of Audience TargetingEarly days Reality for years TodayWe have so much data we can Lots of data, lots of targeting Getting very close to one-to-oneeasily tailor every ad. products. marketing.One-to-one marketing nirvana!! Often without good results. Great! (and a bit scary) The User Behind the Available Impression Quantity Multiple Sources

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Targeting and DataWhatever kind of targeting – geographic,demographic, behavioural - it’s all smart, it’s allpersonal, and it’s all relevant. There’s no downsideto any type of targeting, unless it doesn’t work. Tom Kelly | COO,Safecount, eMarketer interviewThe main unit of currency for onlineadvertising is data. David Hallerman | Senior Analyst, eMarketer Online Targeting is the worst form of targeting with the exception of all others. Repurposed and rephrased Winston Churchill quote on democracy

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Precision and Relevance Increase your chances of success by:  Reaching your audience in an environment and at a time that is relevant and carefully defined.  Aligning your advertising messages with your audience’s passions and interests. Audience targeting is about getting your message in front of a precisely Consumers will look at pre-defined audience. It works personally relevant ads for 25 because it has relevance at its percent longer than ads that are heart. not personally relevant to them. Yahoo! Power of Relevancy April 2011

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The Importance of TrustYahoo! and Ad Choices The Benefits Yahoo! was the first large internet publisher to pilot a  The ability to offer scheme designed to give consumers in Europe easily consumers the confidence accessible information on how online advertising works. that the ads they are receiving are from a trusted Ad Choices reinforces transparency by giving source. consumers control and meaningful choice in the data they share. The Ad Interest Manager tool allows consumers to influence and manage the types of ads they see and the option to opt out of interest-based advertising.

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The Basics Geographic Demographic Time-of-day Location data from activity on Target specific audiences Serve up just the right message Yahoo! sites based on age, gender and at the time right for the right sometimes income. user IP address Visitor registration dataHelpful TipIncrease relevance andperformance by targetingmultiple geographic audiencessimultaneously with customisedmessages for each region

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Context-based Targeting Context-based targeting  The placement of advertising within a related or relevant environment. Contextually relevant advertising provokes an emotional response almost double that without such relevance. Yahoo! Power of Relevance 2011

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Behavioural Targeting The Benefits  Actively interested prospects.  An opportunity for messaging to reflect the prospects stage in the purchase process.  The power of advertising relevance. Targeting ads to consumers whose recent behaviours online indicate that your product or service category is relevant to them. Yahoo! Power of Relevancy April 2011

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Yahoo! Behavioral Targeting – How it works Varying ProductRelevant Users Identify Users Purchase Cycles Rewarding Good Behaviour Match Most to the Models We analyzed predictive patterns for purchase cycles in 100s of product categories In each category, we built models to describe behaviour most likely to lead to an ad response (i.e. click). We scored each Yahoo! user for his fit with every category…daily. Target your ads to users who get highest ‘relevance’ scores in the targeting categories you choose

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Site Retargeting The Pros The Cons  Serves ads based on known interaction with  Recency or frequency of user behaviour and a brand or particular campaign messaging. the importance those factors as indicators of relevance aren’t always a part of basic  Can be used to encourage up and cross- retargeting. selling.  Previous behaviour is often not the best predictor of future behaviour.

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Direct ResponseYahoo! DRScalable performance advertising.Attracting and influencing new and Target Reachexisting users to the point of audiencepurchase for our advertisers. DR People Data Technology

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Yahoo! Dynamic DRThe opportunity to tailor ads to individualconsumers, with offers personally relevantto them.The ads know what they want,and when they want it. Yahoo! Power of Relevancy April 2011

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Creative Optimization – Dynamic DR Dynamic Generation and Optimization of Rich Media Ads Combination of three technologies: Dynamic ad generation A flexible ad unit that can have millions of variations Automated optimization A smart server that will experiment to find the best performing variation for each user Highly targeted ad inventory More targeting data enables better decisions regarding which variation to show – and Yahoo has the most highly targeted inventory in the world17

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The Goals What We Did Increase the number of property  Targeting property owners across Real Estate and Finance owner registrations made via its content on Yahoo! sites in the UK and IP targeting inventory on website yahoo.com Boost the number of  Demographic targeting captured the right segments holidaymaker registrations and  Behavioural Targeting connected brand and audience via bookings made through its ‘Investment’ and ‘Golf’ segments website  Travel placements captured the holidaymaker audiences along with Behaviourally Targeted inventory specific to ‘Destinations’ and ‘Vacations’ segmentsThe Target Audiences Property owners Holidaymakers “Our overall number of conversions increased by Men of 55 years of age or more between 5%-12.5% while the banners were and women 35-years and older running. The CPA was lower than our historical average, falling by around 5%” Sykes Cottages

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Solutions for Automotive Brands Audience Behavioural Direct Retargeting Yahoo! Match Targeting Response SearchFind people who fit your audienceprofileCapture the hottest leadsReach consumers who are in themarket for your productFind people in new marketsRetarget users to stay front ofmind

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Solutions for Finance Brands Behavioural Direct Targeting ResponseReaching people seeking specificbrand namesReaching people who are in themarket for a mortgageTargeting shoppers looking for realestate investmentReaching people who arerefinancingPinpointing highly interestedshoppers and retarget

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Yahoo! Academy Session Review  The nirvana of one-to-one marketing is now a realityAudienceTargeting  Audience targeting exercises and harnesses ‘the power of relevance’ Depth and Breadth of Data Targeting ToolsYahoo! We combine our data with that Our targeting solutions help you of third parties for insights that influence every stage of theAudience are great in breadth and depth. purchase funnel.Targeting Yahoo! user data Self-reporting Direct Response Third party data Context-based Yahoo! Dynamic DR Deep Science We convert data into actionable Site retargeting Consumer Connect insights so that you can get closer to your audience. Behavioural Audience Match